What Are Carbon Credits?
What Are They?
Carbon credits are certificates that represent one tonne of CO2 removed from the atmosphere. Think of them as permission slips for emissions - when you buy a carbon credit, you're supporting projects that reduce greenhouse gases.
How Do They Work?
Carbon credits come from verified projects that:
- Plant and protect forests
- Build renewable energy (wind, solar)
- Capture methane from landfills
- Support sustainable farming practices
Why Carbon Credits Matter Now
Microsoft just bought 14.6 million carbon credits in Q2 2025 alone! Tech giants like Google, Meta, and Microsoft are spending billions on AI data centers, but their emissions are skyrocketing 30% since 2020. Carbon credits are their lifeline to stay carbon neutral.
Google, Meta, Microsoft, and Salesforce formed the "Symbiosis Coalition" - committing to buy 20 million tons of carbon removal credits by 2030. When trillion-dollar companies are going all-in on carbon credits, you know this market is exploding.
Here's the crazy part: Microsoft even restarted a nuclear plantat Three Mile Island just to power their data centers carbon-free
India to Get Its First Carbon Market by Mid-2026
The government will soon announce emissions intensity trajectories for nine 'hard-to-abate' sectors, paving the way for India's inaugural carbon market.
Moneycontrol
Published: Mar 12, 2025
Parliament Question: Indian Carbon Market
The Ministry of Environment, Forest and Climate Change discusses the establishment of the Indian Carbon Market under the Energy Conservation Amendment Act, 2022.
Press Information Bureau
Published: Dec 9, 2024